
TSE:GEI
This summary was created by AI, based on 11 opinions in the last 12 months.
Gibson Energy (GEI-T) is a prominent player in the crude oil infrastructure sector, with ownership of terminals, pipelines, blending, and export facilities handling a significant portion of Western Canada's oil. The company boasts a stable business model underpinned by take-or-pay contracts that insulate it from oil price fluctuations, leading to steady cash flows. Analysts have projected an average EBITDA growth rate of around 7% annually and combined with a current dividend yield of about 5.82%, a total return of approximately 13% is anticipated. Although the stock's valuation is deemed to be at the upper end of its segment, many experts see it as a hold due to its attractive yield and stability. Comparatively, the stock trades at multiples similar to other midstream companies, with some experts favoring alternative names for growth potential while acknowledging Gibson Energy's defensive qualities.
Top income idea. Storage. Since oil sands aren't growing as much, growth rate has come down but cashflow remains very strong, which gives them flexibility. Reducing debt, buying back shares. Good metrics for debt and payout ratio. Dividend safe, grows 5% a year. Yield is 6.96%.
(Analysts’ price target is $25.14)Simple, essential business. Tanks outside oil sands that put oil into pipelines. Amazing part of the energy complex. Has decided not to grow, therefore no market pressure from increasing capex. Will maintain profit margin through a difficult, inflationary time and compound those income streams. Great way to enhance a portfolio. Yield is 6.24%.
(Analysts’ price target is $25.64)Similar to Keyera. A smaller infrastructure and transportation sector player. The sector is being rapidly consolidated. The play right now is to look at the next acquisition. Could be okay for a smaller position or for those with more risk appetite.
He likes it since it is defensive and quite cheap with a great dividend of 7%. Doesn't have a great EPS though.